Samsung, the world’s largest producer of flat screen televisions, is partnering with filmmaker James Cameron to create more 3D video content. This partnership occurs in response to the increased demand for 3D televisions in the global market. The relatively recent resurgence of 3D films has prompted Samsung and its competitors including Sony, LG, Toshiba, and Sharp to release 3D television models throughout 2010. Even without much selection of 3D films and other video content, Samsung expects to fall short of the demand for 3D products this year due to a shortage of a specific technological component necessary to their production.
In March of this year, Cameron helped Samsung launch the first ever 3D HD television in the United States. The company is depending upon the continued success of films such as James Cameron’s Avatar, Tim Burton’s Alice in Wonderland, and Blue Sky Studio’s Ice Age: Dawn of the Dinosaurs to boost sales of its new 3D television. Sales are projected at over 2 million units for 2010. Samsung’s plans to boost 3D content do not stop at partnering with James Cameron. The organization has also struck deals with Dreamworks Animation and SM Entertainment (a South Korean entertainment agency) to increase 3D content in the coming years.
In a February 2nd conference call with Rupert Murdock, the Chairman and Chief Executive Officer to New-York based News Corporation admitted that movies directed by James Cameron had a tendency to go over budget; but, his decision to hedge much of the risk for “Avatar” out to other investors has ended up with the media mogul making a very expensive investor’s mistake.
After all, once history’s highest-grossing film is released on DVD and pay-to-view television, it is projected to earn $350 million to $400 million for Murdock’s corporation. This sum alone is only 40 percent of the 1 billion-dollar cut that Twentieth Century Fox and “Avatar” investors are expected to earn, an astounding total that equals News Corp.’s average quarterly operating profit from 2009. So, as it turns out, instead of getting the whole cake, Mr. Generous gave New York-based Dune Entertainment LLC a 40 percent cut, and London-based Ingenious Media Holdings PLC the left overs.
But News Corp hasn’t made a public profit forecast for James Cameron’s “Avatar,” so analysts have been left to their own devices to estimate a profit margin. Projections go from a low of $380 million in a proposal by Soleil Securities’ Alan Gould, to a high of $737 million, as proposed by Anthony DiClemente, a Barclays analyst who also considered another $220 million dollars in distribution during his calculations.
The movie that will make billions...believe it, or not.
There’s no reason to doubt that Murdock is disappointed with his doubting James Cameron’s vision of Pandora, since Box Office Mojo reported that the film has generated a whopping $2.64 billion in worldwide ticket sales as of Sunday, March 14th.